Question

Please show step by step how to figure this out. 7. XYZ Corp. pays $1,200,000 for...

Please show step by step how to figure this out.

7. XYZ Corp. pays $1,200,000 for machinery in 2018. Ignore bonus depreciation in the following calculations.
a. What is the total 2018 depreciation deduction if XYZ elects the Section 179 "option to expense?"
b. Same as (a), except total 7-year property acquired during the year (which includes the machine) amounted to $2,520,000?
c. Same as (a), but if XYZ Corp.'s taxable income before the Section 179 election was $4000, how much of the Section 179 depreciation is deductible?

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

A. As par section 179 Corp. can cliam 100% of cost of machinery but Max. to $10,000,000 deduction Cliamed by Crop.Normal 1st Year Depreciation is $0.00 and Section 179 Deduction for Exp. is $10,000,000.

B.   1st Year Depreciation is $0.00 and Section 179 Deduction for Exp. is 9,80,000

C.  If there is not enough 'earned income' for the Section 179 to offset, it will be carried to the next year.Hans Amount $4000 is claimed deducation for 2018

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
On November 16, 2018, Ace Company purchased manufacturing equipment (7-year property) for 2,400,000 and computers and...
On November 16, 2018, Ace Company purchased manufacturing equipment (7-year property) for 2,400,000 and computers and duplication machines (5-year property) for 250,000. Ace elects not tot take bonus depreciation on these assets but wants to take Section 179 expensing and MACRS depreciation instead. These assets are the only asset purchases that Ace makes during all of 2018. Compute Ace’s Section 179 expense deduction and its MACRS depreciation deduction for these assets in 2018 assuming that any expensing is used first...
1.Chunwei acquired and placed in service $1,250,000 of equipment on August 1, 2018 for use in...
1.Chunwei acquired and placed in service $1,250,000 of equipment on August 1, 2018 for use in her sole proprietorship. The equipment is 5-year recovery property. No other acquisitions are made during the year. Chunwei elects to expense the maximum amount under Sec. 179, and bonus depreciation is not applied. Chunwei's total deductions for 2018 (including Sec. 179 and depreciation) are A) $1,233,000. B) $233,000. C) $1,165,000. D) $1,033,000. 2. Ahmed purchases and places in service in 2018 personal property costing...
On July 1 of the current year, Jeremiah Company purchased and placed into service factory machinery...
On July 1 of the current year, Jeremiah Company purchased and placed into service factory machinery to be used in its operations.  The machinery cost $150,000 and qualifies as 7-year MACRS property.  The machines were the only assets placed into service during the year.  Jeremiah elects to expense the maximum under bonus depreciation and nothing under Section 179.  The company’s taxable income before any deduction related to the machines is $80,000.  Assume the depreciation table percentages are 14.29% for Year 1 and 24.49% for Year...
Woolard Inc. has taxable income in 2017 of $150,000 before any depreciation deductions (§179, bonus, or...
Woolard Inc. has taxable income in 2017 of $150,000 before any depreciation deductions (§179, bonus, or MACRS) and acquired the following assets during the year: (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.) Asset Placed In Service Basis Office furniture (used) March 20 $ 580,000 a. If Woolard elects $50,000 of §179, what is Woolard’s total depreciation deduction for the year?...
In 2019, Carter Corporation acquires and places in service $3,000,000 of 7-year tangible personal property for...
In 2019, Carter Corporation acquires and places in service $3,000,000 of 7-year tangible personal property for use in its business. Carter’s business taxable income before any Sec. 179 deduction is $350,000. Carter elects the maximum Sec. 179 expensing for the property but elects out of bonus depreciation. What is the total cost recovery for the property in 2019? 1. $ 697,247 2. $ 728,685 3. $1,302,942 4. $ 917,247 5. None of the answers provided is correct.
Assume that Timberline Corporation has 2018 taxable income of $240,000 for purposes of computing the §179...
Assume that Timberline Corporation has 2018 taxable income of $240,000 for purposes of computing the §179 expense. It acquired the following assets in 2018: (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) Purchase Asset Date Basis Furniture (7-year) December 1 $ 450,000 Computer equipment (5-year) February 28 90,000 Copier (5-year) July 15 30,000 Machinery (7-year) May 22 480,000 Total $ 1,050,000 Problem 10-58 Part b b. What would Timberline’s maximum depreciation deduction be for 2018...
Assume that Timberline Corporation has 2019 taxable income of $240,000 for purposes of computing the §179...
Assume that Timberline Corporation has 2019 taxable income of $240,000 for purposes of computing the §179 expense. It acquired the following assets in 2019: (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) Purchase Asset Date Basis Furniture (7-year) December 1 $ 450,000 Computer equipment (5-year) February 28 90,000 Copier (5-year) July 15 30,000 Machinery (7-year) May 22 480,000 Total $ 1,050,000 c. What would Timberline’s maximum depreciation deduction be for 2019 if the machinery cost...
rane Enterprises, a calendar year manufacturer based in College Station, Texas, began business in 2017. In...
rane Enterprises, a calendar year manufacturer based in College Station, Texas, began business in 2017. In the process of setting up the business, Karane has acquired various types of assets. Below is a list of assets acquired during 2017: Assets    Cost Date   Placed in Service Office furniture 150,000 2/3/17 Machinery 1,560,000 7/22/17 Used delivery truck 40,000 8/17/17 During 2017, Karane was very successful (and had no 179 limitation) and decided to acquire more assets this next year to increase...
Way Corporation disposed of the following tangible personal property assets in the current year. Assume that...
Way Corporation disposed of the following tangible personal property assets in the current year. Assume that the delivery truck is not a luxury auto. Calculate Way Corporation’s 2018 depreciation deduction (ignore §179 expense and bonus depreciation for this problem). Asset Date acquired Date sold Convention Original Basis Furniture (7 year) 5/12/14 7/15/18 HY $55,000 Machinery (7 year) 3/23/15 3/15/18 MQ $72,000 Delivery truck (5 year) 9/17/16 3/13/18 HY $20,000 Machinery (7 year) 10/11/17 8/11/18 MQ $270,000 Computer (5 year) 10/11/18...
[The following information applies to the questions displayed below.] Assume that Timberline Corporation has 2019 taxable...
[The following information applies to the questions displayed below.] Assume that Timberline Corporation has 2019 taxable income of $240,000 for purposes of computing the §179 expense. It acquired the following assets in 2019: (Use MACRS Table 1, Table 2, Table 3, Table 4 and Table 5.) Purchase Asset Date Basis Furniture (7-year) December 1 $ 450,000 Computer equipment (5-year) February 28 90,000 Copier (5-year) July 15 30,000 Machinery (7-year) May 22 480,000 Total $ 1,050,000 c. What would Timberline’s maximum...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT